Carnival Lifts Outlook Again As Booking Momentum Outpaces Capacity Growth

Core Insights - Carnival Corporation & plc reported record third-quarter 2025 results with net income of $1.9 billion, or $1.33 per diluted share, an increase from $1.7 billion a year earlier [1] - Adjusted net income was $2.0 billion, or $1.43 per diluted share, exceeding analyst expectations of $1.32 [1] - Revenue rose to $8.153 billion, surpassing the consensus estimate of $8.101 billion and increasing from $7.9 billion last year [1] Financial Performance - Adjusted EBITDA reached $3.0 billion [1] - Net yields in constant currency increased by 4.6% year over year, while gross margin yields improved by 6.4% [2] - Cruise costs per available lower berth day (ALBD) rose by 4.6% from 2024, with adjusted cruise costs excluding fuel increasing by 5.5%, which was 1.5 points better than guidance [2] Operational Metrics - Fuel consumption per ALBD fell by 5.2% due to efficiency investments [3] - Passenger cruise days totaled 27.5 million, with occupancy steady at 112% [3] - Customer deposits reached a record $7.1 billion as of August 31 [3] Cash Flow and Liquidity - Cash from operations was $1.38 billion in the quarter and $4.7 billion year-to-date [3] - Capital expenditures totaled $648 million in the quarter [3] - Liquidity stood at $6.26 billion, and total debt was $26.5 billion [4] Debt Management - The company improved its net debt-to-adjusted EBITDA ratio to 3.6x from 4.7x a year earlier [4] - During the quarter, the company refinanced $4.5 billion of debt and prepaid $700 million, while issuing new senior unsecured notes totaling $4.2 billion [6] - Moody's upgraded its credit rating and maintained a positive outlook [6] Future Outlook - Booking trends have strengthened since May, with higher booking volumes than last year, affirming the success of demand generation efforts [5] - Nearly half of 2026 is booked at historical high prices for both North America and Europe segments, building a strong base for next year [5] - Record booking volumes for 2027 were achieved during the third quarter [5]